Abbas et al Policy brief December 2022.pdf
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- Currently, Punjab is struggling to meet its urban citizens' local service delivery needs. There are significant deficits in areas such as access to clean water, sanitation, local public transport, affordable housing,
- Punjab’s demographic transformation led to a rise in property values, which offers an opportunity to use property tax as an instrument of sustainable financing to meet the growing public service needs.
- The contribution of property taxes in Punjab at 0.05% of GDP is much lower than the average for low- and middle-income countries (LMICs). We analyse and compare the average tax rates for property holders occupying properties of different values in Lahore and find that
these fall as the assessed values of properties increase within tax
- This policy brief explores some of the challenges related to Punjab’s property tax, analyses their implications for tax utilisation and equity, and examines future policy directions.